NYSE American
Template:Short description Template:Use mdy dates Template:Infobox exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.<ref>Template:Cite book</ref>
NYSE Euronext acquired AMEX on October 1, 2008,<ref>Template:Cite web</ref> with AMEX integrated with the Alternext European small-cap exchange and renamed the NYSE Alternext U.S.<ref name="New York Stock Exchange">Template:Cite web</ref> In March 2009, NYSE Alternext U.S. was changed to NYSE Amex Equities. On May 10, 2012, NYSE Amex Equities changed its name to NYSE MKT LLC.<ref name="amex_info">Template:Cite web</ref>
Following the SEC approval of competing stock exchange IEX in 2016, NYSE MKT rebranded as NYSE American and introduced a 350-microsecond delay in trading, referred to as a "speed bump", which is also present on the IEX.<ref name="american">Template:Cite news</ref><ref name="upstart">Template:Cite news</ref><ref name="crush">Template:Cite news</ref>
History
The Curb market
The exchange grew out of the loosely organized curb market of curbstone brokers on Broad Street in Manhattan. Efforts to organize and standardize the market started early in the 20th century under Emanuel S. Mendels and Carl H. Pforzheimer.<ref>Template:Cite book</ref> The curb brokers had been kicked out of the Mills Building front by 1907, and had moved to the pavement outside the Blair Building where cabbies lined up. There they were given a "little domain of asphalt" fenced off by the police on Broad Street between Exchange Place and Beaver Street.<ref name=nyt-complaints/> As of 1907, the curb market operated starting at 10 AM, each day except Sundays, until a gong at 3 PM. Orders for the purchase and sale of securities were shouted down from the windows of nearby brokerages, with the execution of the sale then shouted back up to the brokerage.<ref name="nyt-complaints">Template:Cite news</ref>
Organizing and 'Curb list'
As of 1907, E. S. Mendels gave the brokers rules "by right of seniority", but the curb brokers intentionally avoided organizing. According to the Times, this came from a general belief that if a curb exchange was organized, the exchange authorities would force members to sell their other exchange memberships.<ref name=nyt-complaints/> However, in 1908 the New York Curb Market Agency was established, which developed appropriate trading rules for curbstone brokers, organized by Mendels.<ref name=abc/> The informal Curb Association formed in 1910 to weed out undesirables.<ref name=nyt-stock-cold/> The curb exchange was for years at odds with the New York Stock Exchange (NYSE), or "Big Board", operating several buildings away. Explained the New York Times in 1910, the Big Board looked at the curb as "a trading place for 'cats and dogs.'"<ref name=nyt-curb-out/> On April 1, 1910, however, when the NYSE abolished its unlisted department, the NYSE stocks "made homeless by the abolition" were "refused domicile" by the curb brokers on Broad Street until they had complied with the "Curb list" of requirements.<ref name="nyt-curb-out">Template:Cite news</ref> In 1911, Mendels and his advisers drew up a constitution and formed the New York Curb Market Association, which can be considered the first formal constitution of American Stock Exchange.<ref name="abc">http://abcnewspapers.com/index.php?option=com_content&task=view&id=11281 Template:Webarchive New York Curb Market Association</ref>
1920s-1940s: Move indoors
In 1920, journalist Edwin C. Hill wrote that the curb exchange on lower Broad Street was a "roaring, swirling whirlpool" that "tears control of a gold-mine from an unlucky operator, and pauses to auction a puppy-dog. It is like nothing else under the astonished sky that is its only roof."<ref name="Munseys Magazine 1920 p. 46">Template:Cite book</ref> After a group of Curb brokers formed a real estate company to design a building, Starrett & Van Vleck designed the new exchange building on Greenwich Street in Lower Manhattan between Thames and Rector, at 86 Trinity Place. It opened in 1921,<ref name=nyt-stock-cold/> and the curbstone brokers moved indoors on June 27, 1921.<ref>Template:Cite book</ref> In 1929, the New York Curb Market changed its name to the New York Curb Exchange.<ref>Template:Cite web</ref> The Curb Exchange soon became the leading international stock market, and according to historian Robert Sobel, "had more individual foreign issues on its list than [...] all other American securities markets combined."<ref>Template:Cite book</ref>
Edward Reid McCormick was the first president of the New York Curb Market Association and is credited with moving the market indoors.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> George Rea was approached about the position of president of the New York Curb Exchange in 1939.<ref name="curb exchange">Template:Cite news</ref> He was unanimously elected<ref name="curb exchange" /> as the first paid president in the history of the Curb Exchange. He was paid $25,000 per year (equivalent to $Template:Formatprice todayTemplate:Inflation-fn) and held the position for three years before offering his resignation in 1942.<ref>Template:Cite news</ref> He left the position having "done such a good job that there is virtually no need for a full-time successor."<ref>Template:Cite magazine</ref>
Modernization as the American Stock Exchange
In 1953, the Curb Exchange was renamed the American Stock Exchange.<ref>Template:Cite web</ref> The exchange was shaken by a scandal in 1961, and in 1962 began a reorganization.<ref name=nyt-verylarge/> Its reputation recently damaged by charges of mismanagement, in 1962, the American Stock Exchange named Edwin Etherington its president. Writes CNN, he and executive vice president Paul Kolton were "tapped in 1962 to clean up and reinvigorate the scandal-plagued American Stock Exchange."<ref>Template:Cite web</ref>
As of 1971, it was the second largest stock exchange in the United States. Paul Kolton succeeded Ralph S. Saul as AMEX president on June 17, 1971,<ref name="nyt-verylarge"> Template:Cite news</ref> making him the first person to be selected from within the exchange to serve as its leader, succeeding Ralph S. Saul, who announced his resignation in March 1971.<ref>Rustin, Richard E. (May 14, 1971). "American Board Panel Seen Recommending Kolton, No. 2 Man, as Successor to Saul". The Wall Street Journal. Retrieved October 30, 2010.</ref><ref name="NYT2010">Template:Registration required Kaplan, Thomas (October 29, 2010). "Paul Kolton, Who Led the American Stock Exchange, Dies at 87". The New York Times. Retrieved October 29, 2010.</ref> In November 1972, Kolton was named as the exchange's first chief executive officer and its first salaried top executive.<ref>Staff (November 3, 1972). "Amex Formally Elects Paul Kolton as Chairman, Chief Executive Officer". The Wall Street Journal. Retrieved October 30, 2010.</ref> As chairman, Kolton oversaw the introduction of options trading. Kolton opposed the idea of a merger with the New York Stock Exchange while he headed the exchange saying that "two independent, viable exchanges are much more likely to be responsive to new pressures and public needs than a single institution".<ref name=NYT2010/> Kolton announced in July 1977 that he would be leaving his position at the American Exchange in November of that year.<ref>Staff (July 17, 1977). "Paul Kolton Leaving Amex". (via Dow Jones Service) (The Pittsburgh Press (via Google News)). Retrieved July 18, 2012.</ref>
In 1977, Thomas Peterffy purchased a seat on the American Stock Exchange. Peterffy created a major stir among traders by introducing handheld computers onto the trading floor in the early 1980s.<ref name="Forbes">Template:Cite magazine</ref><ref name="Business">Template:Cite magazine</ref>
Introducing ETFs
ETFs or exchange-traded funds had their genesis in 1989 with Index Participation Shares, an S&P 500 proxy that traded on the American Stock Exchange and the Philadelphia Stock Exchange. This product was short-lived after a lawsuit by the Chicago Mercantile Exchange was successful in stopping sales in the United States.<ref>Template:Cite book</ref><ref>Template:Cite news</ref>
In 1990, a similar product, Toronto Index Participation Shares, which tracked the TSE 35 and later the TSE 100 indices, started trading on the Toronto Stock Exchange (TSE) in 1990. The popularity of these products led the American Stock Exchange to try to develop something that would satisfy regulations by the U.S. Securities and Exchange Commission.<ref>Template:Cite web</ref>
Nathan Most and Steven Bloom, under the direction of Ivers Riley, designed and developed Standard & Poor's Depositary Receipts (NYSE Arca: SPY), which were introduced in January 1993.<ref>Template:Cite book</ref><ref>Template:Cite news</ref> Known as SPDRs or "Spiders", the fund became the largest ETF in the world. In May 1995, State Street Global Advisors introduced the S&P 400 MidCap SPDRs (NYSE Arca: MDY).
Barclays, in conjunction with MSCI and Funds Distributor Inc., entered the market in 1996 with World Equity Benchmark Shares (WEBS), which became iShares MSCI Index Fund Shares. WEBS originally tracked 17 MSCI country indices managed by the funds' index provider, Morgan Stanley. WEBS were particularly innovative because they gave casual investors easy access to foreign markets. While SPDRs were organized as unit investment trusts, WEBS were set up as a mutual fund, the first of their kind.<ref>Template:Cite book</ref><ref>Template:Cite book</ref>
In 1998, State Street Global Advisors introduced "Sector Spiders", separate ETFs for each of the sectors of the S&P 500 Index.<ref>Template:Cite web</ref> Also in 1998, the "Dow Diamonds" (NYSE Arca: DIA) were introduced, tracking the Dow Jones Industrial Average. In 1999, the influential "cubes" (Nasdaq: QQQ), were launched, with the goal of replicate the price movement of the NASDAQ-100.
The iShares line was launched in early 2000. By 2005, it had a 44% market share of ETF assets under management.<ref>Template:Cite web</ref> Barclays Global Investors was sold to BlackRock in 2009.
NYSE merger
As of 2003, AMEX was the only U.S. stock market to permit the transmission of buy and sell orders through hand signals.<ref>Larry Harris, Trading and Exchanges, Oxford University Press US: 2003, page 104, Template:ISBN, Template:ISBN</ref>
In October 2008 NYSE Euronext completed acquisition of the AMEX for $260 million in stock.<ref>Template:Cite web</ref> Before the closing of the acquisition, NYSE Euronext announced that the AMEX would be integrated with the Alternext European small-cap exchange and renamed the NYSE Alternext U.S.<ref name="New York Stock Exchange"/> The American Stock Exchange merged with the New York Stock Exchange (NYSE Euronext) on October 1, 2008.<ref name="amex_info"/> Post merger, the Amex equities business was branded "NYSE Alternext US". As part of the re-branding exercise, NYSE Alternext US was re-branded as NYSE Amex Equities.<ref name="amex_info"/> On December 1, 2008, the Curb Exchange building at 86 Trinity Place was closed, and the Amex Equities trading floor was moved to the NYSE Trading floor at 11 Wall Street.<ref name="amex_info"/> 90 years after its 1921 opening, the old New York Curb Market building was empty but remained standing.<ref name="nyt-stock-cold">Template:Cite news</ref> In March 2009, NYSE Alternext U.S. was changed to NYSE Amex Equities. On May 10, 2012, NYSE Amex Equities changed its name to NYSE MKT LLC.<ref name="amex_info"/>
In June 2016, a competing stock exchange IEX (which operated with a 350-microsecond delay in trading), gained approval from the SEC, despite lobbying protests by the NYSE and other exchanges and trading firms.<ref>Template:Cite news</ref> On July 24, 2017, the NYSE renamed NYSE MKT to NYSE American, and announced plans to introduce its own 350-microsecond "speed bump" in trading on the small and mid-cap company exchange.<ref name=american /><ref name=upstart /><ref name=crush />
Products
Management
Past presidents of the American Stock Exchange include:<ref>Template:Cite book</ref>
- John L. McCormack (1911–1914)
- Edward R. McCormick (1914–1923)
- John W. Curtis (1923–1925)
- David U. Page (1925–1928)
- William S. Muller (1928–1932)
- Howard C. Sykes (1932–1934)
- E. Burd Grubb (1934–1935)
- Fred C. Moffatt (1935–1939; 1942–1945)
- George P. Rea (1939–1942)
- Edwin Posner (1945–1947; January–September, 1962)
- Edward C. Werle (February–March, 1947)
- Francis Adams Truslow (1947–1951)
- Edward T. McCormick (1951–1961)
- Joseph F. Reilly (1961–1962)
- Edwin D. Etherington (1962–1966)
- Ralph S. Saul (1966–1971)
- Paul Kolton (1971–1973)
- Richard M. Burdge (1973–1977)
- Robert J. Birnbaum (1977–1986)
- Kenneth R. Leibler (1986–1990)<ref>Template:Cite news</ref>
Past chairmen of the American Stock Exchange include:
- Clarence A. Bettman (1939–1941)
- Fred C. Moffatt (1941–1945)
- Edwin Posner (1945–1947; 1962–1965)
- Edward C. Werle (1947–1950)
- Mortimer Landsberg (1950–1951)
- John J. Mann (1951–1956)
- James R. Dyer (1956–1960)
- Joseph E. Reilly (1960–1962)
- David S. Jackson (1965–1968)
- Macrae Sykes (1968–1969)
- Frank C. Graham Jr. (1969–1973)
- Paul Kolton (1973–1978)
- Arthur Levitt Jr. (1978–1989)
- James R. Jones (1989–1993)
- Salvatore F. Sodano (1999–2005)
Gallery
-
The text reads: "On June 27, 1921, the curbstone brokers moved from their outdoor Market on Broad Street to establish on this site the indoor securities market that became the American Stock Exchange." -
2004: Vice Adm. Gary Roughead, right, rings the opening bell at the American Stock Exchange, during the 17th Annual Fleet Week in New York -
Old American Stock Exchange Building 2009
See also
- NYSE Arca Major Market Index
- Microcap stock
- Economy of New York City
- List of stock exchanges in the Americas
- List of stock exchange mergers in the Americas
- Consolidated Tape System
- Hal S. Scott
- Michael J. Meehan
References
Further reading
External links
Template:NYSE Euronext Template:Stock market Template:Authority control